Cloud adoption is transforming the banking sector and business sector in general across Europe. Yet as recent political shifts and global tensions place new pressures on digital infrastructure, the choice of cloud provider is more critical than ever, particularly for leading banks in South Eastern Europe and the EU.

This article explores the evolving landscape of cloud computing in the region, analyzes the risks of relying on US giants that we’re leading the market by now and were considered the go-to solution and provides a data-driven guide to the best EU-based cloud alternatives for financial institutions seeking reliability, compliance, and innovation.

Understanding the Current US-EU Cloud Landscape

Transatlantic Dependence Meets Geopolitical Uncertainty

Today, over half of the enterprise cloud infrastructure in the EU is provided by U.S. hyperscalers, with Amazon Web Services holding a 31% market share, Microsoft Azure 23%, and Google Cloud 11%. These platforms offer vast compute power, global reach, and a rich ecosystem tailored for digital banking. However, this heavy dependence creates strategic vulnerabilities.

Recent policy actions and commentary from US political leaders have raised concerns among banking CIOs and CTOs throughout Europe. The escalation of tariffs, along with talk of stricter controls on cross-border data flows, has highlighted a sobering reality: EU banks leveraging American cloud platforms may face sudden regulatory disruption or access restrictions. For sectors such as fintech, e-commerce, and AI-driven analytics, these risks are particularly acute, threatening both business continuity and customer trust.

The EU’s Response and Push for Tech Sovereignty

European governments and industry groups are accelerating efforts toward “tech sovereignty”—ensuring vital systems can operate independently of unpredictable foreign policies. Initiatives like Gaia-X aim to boost European cloud capability, enhance data protection aligned with GDPR, and foster market resilience. Despite these moves, US providers still dominate the landscape, and most EU institutions have yet to fully diversify their cloud footprint, amplifying exposure to geopolitical events.

Why EU Banks Should Prioritize EU Cloud Providers

Regulatory Compliance and Data Protection

For banking leaders, compliance with EU directives like GDPR and the upcoming Digital Operational Resilience Act (DORA) is non-negotiable. EU-based cloud services are designed from the ground up to adhere to these standards, offering strong assurances on data locality, encryption, and auditability that US providers may struggle to match under foreign legal frameworks (such as the US CLOUD Act).

Enhanced Security and Operational Resilience

Shifting to an EU cloud platform supports stringent cybersecurity requirements and aligns with best practices for operational risk management. With local data centers, clear escalation protocols, and transparent incident response, these providers minimize service interruption threats—even amidst transatlantic political turbulence.

The experience over the last couple of years has also shown that hyperscale’s are great when they work, until they don’t…in case of incidents direct support is almost non-existent and incident reports are not delivered or providing useful information.

Innovation Tailored for Banking Needs

EU cloud providers are rapidly enhancing offerings to remain competitive. Features such as real-time analytics, omnichannel API integration, and AI-driven risk intelligence are increasingly available with 99.99% uptime SLAs. The latest platforms enable seamless scalability for banks handling peak transaction volumes, advanced fraud detection, and agile deployment of new financial products.

What Is Cloud Computing and Why Is It Vital for Banks?

Cloud computing refers to the on-demand delivery of IT services—including servers, storage, databases, and AI infrastructure—over the internet. For banks, cloud technology powers:

• Real-time analytics for customer engagement and risk scoring

• AI-driven tools for fraud prevention and regulatory compliance

• Omnichannel platforms for fast, unified customer experiences

• Secure storage for sensitive transaction and personal data

Who Should Use Cloud and What Are the Benefits?

From regional banks to major financial institutions, cloud adoption yields:

• Operational Efficiency

Automated scaling and consistent performance even during surges in digital transactions.

• Cost Flexibility

Pay-as-you-go pricing models and reduced in-house IT overhead.

• Enhanced Compliance

Built-in tools for GDPR, DORA, and EU-specific audit requirements.

• Resilience and Security

High-grade encryption, robust backup, and disaster recovery for continuous uptime.

Key Qualities of a Secure, Reliable Bank Cloud

Top 5 EU-Based Cloud Providers for Banks

Choosing the right platform requires weighing pros, cons, and alignment with banking priorities:

1. OVHcloud (France)

2. Scaleway (France)

3.Exoscale (Switzerland wide)

4. ASEE Cloud (EU-wide)

5. gridscale (Germany/Austria/Switzerland/Netherlands)

Action Steps for Bank Decision-Makers

1. Audit your current cloud footprint
   Map workloads and applications to assess geographic and regulatory exposure.
2. Evaluate EU provider fit
   Prioritize platforms with proven banking compliance, local data centers, and strong security credentials.
3. Pilot high-impact workloads
   Test migration of analytics, AI, or customer engagement tools to EU platforms.
4. Stay informed on regulation
   Monitor developments around DORA, GDPR, and emerging EU cloud security standards.
5. Engage in EU tech initiatives
   Participate in programs like Gaia-X to shape the next phase of regional cloud innovation.

Strengthening Digital Banking with EU Cloud

Banks in South Eastern Europe and the wider EU face an inflection point. Continued reliance on US cloud platforms exposes financial institutions to geopolitical risks beyond their control. Meanwhile, EU-based providers are rapidly closing the feature gap, offering compliance-driven, innovative, and resilient cloud infrastructure that aligns with evolving regulatory requirements.

The path forward calls for a strategic pivot to regional clouds. By auditing dependencies, piloting EU alternatives, and engaging with pan-European tech initiatives, banking leaders can maintain agility, regulatory compliance, and customer trust, while insulating critical operations from external shocks.

To safeguard digital transformation and drive next-generation financial services, now is the time to treat cloud choice as a key pillar of your bank’s risk and innovation strategy.

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